The Gauteng Health Department has owed 69 suppliers R743m for more than a year, with some companies now refusing to do any more business with the department, according to provincial Health MEC Nomantu Nkomo-Ralehoko.
In a statement in PoliticsWeb, DA shadow health MEC Jack Bloom said the figures were revealed in response his questions in the legislature, and showed “abysmal financial management that has not improved despite umpteen promises by the MEC and by Premier Panyaza Lesufi”.
The consequences for hospital patients are dire as budgets are misspent, and some suppliers refuse to deal with the Department as they won't be paid within the legally required 30 days, he wrote.
Although the department officially acknowledges only one company, Curved Business Solutions, has cut off services over non-payment (owing R5.4m), there are reports of other suppliers quietly cutting off services for the same reason, Bloom said.
See more from MedicalBrief archives:
Gauteng Health in trouble for unpaid R1bn owed to suppliers
Gauteng Health worst for non-payment of creditors
State owes medical device manufacturers R1bn